Correlation Between Masterwork Machinery and CNOOC
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By analyzing existing cross correlation between Masterwork Machinery and CNOOC Limited, you can compare the effects of market volatilities on Masterwork Machinery and CNOOC and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Masterwork Machinery with a short position of CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Masterwork Machinery and CNOOC.
Diversification Opportunities for Masterwork Machinery and CNOOC
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Masterwork and CNOOC is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Masterwork Machinery and CNOOC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC Limited and Masterwork Machinery is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Masterwork Machinery are associated (or correlated) with CNOOC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNOOC Limited has no effect on the direction of Masterwork Machinery i.e., Masterwork Machinery and CNOOC go up and down completely randomly.
Pair Corralation between Masterwork Machinery and CNOOC
Assuming the 90 days trading horizon Masterwork Machinery is expected to under-perform the CNOOC. In addition to that, Masterwork Machinery is 1.86 times more volatile than CNOOC Limited. It trades about -0.51 of its total potential returns per unit of risk. CNOOC Limited is currently generating about 0.11 per unit of volatility. If you would invest 2,736 in CNOOC Limited on October 13, 2024 and sell it today you would earn a total of 89.00 from holding CNOOC Limited or generate 3.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Masterwork Machinery vs. CNOOC Limited
Performance |
| Timeline |
| Masterwork Machinery |
| CNOOC Limited |
Masterwork Machinery and CNOOC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Masterwork Machinery and CNOOC
The main advantage of trading using opposite Masterwork Machinery and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Masterwork Machinery position performs unexpectedly, CNOOC can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CNOOC will offset losses from the drop in CNOOC's long position.| Masterwork Machinery vs. Guangdong Jingyi Metal | Masterwork Machinery vs. Qingdao Choho Industrial | Masterwork Machinery vs. Tongling Nonferrous Metals | Masterwork Machinery vs. Suzhou Industrial Park |
| CNOOC vs. China World Trade | CNOOC vs. Great Sun Foods Co | CNOOC vs. Masterwork Machinery | CNOOC vs. Long Yuan Construction |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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